SANCTIONS COMPLIANCE & ENFORCEMENT

Sanctions compliance is a critical component of legal security for businesses operating in the global marketplace. Various jurisdictions, including the United States, European Union, and United Kingdom, enforce sanctions regimes and export control laws—such as the Office of Foreign Assets Control (OFAC) regulations in the U.S. and the Office of Trade Sanctions Implementation (OTSI) framework in the U.K.—which may impose significant constraints on international transactions. Non-compliance with these measures can expose businesses to severe legal, financial, and reputational risks.

Our sanctions compliance and enforcement advisory services empower clients to proactively identify and mitigate the risks associated with U.S., U.K., and E.U. trade and economic sanctions. We conduct in-depth risk assessments, investigate potential violations, and develop robust compliance strategies to ensure adherence to evolving regulatory requirements.

We offer a comprehensive compliance framework, including rigorous due diligence on business partners before contract execution or strategic alliances. This proactive approach enables our clients to navigate the complexities of international trade with confidence, safeguarding their operations from inadvertent regulatory breaches.

Sanctions may be seen as restrictions on exporting certain goods and technologies, asset freezes, financial transaction prohibitions, or investment restrictions involving designated countries, entities, or individuals.

A key concept in sanctions compliance is nexus, which refers to the legal or operational connection between a person, entity, or jurisdiction, triggering the applicability of sanctions. Even seemingly innocuous activities—such as utilizing U.S.-based email services, software, or currency in transactions—can create a nexus, subjecting businesses to sanctions enforcement.

To mitigate sanctions-related risks, businesses must conduct continuous screening of transactions, counterparties, and contractual obligations. Given the extraterritorial reach of many sanctions regimes, companies should remain vigilant even when engaging in transactions that, on the surface, appear unrelated to sanctioned jurisdictions.

Furthermore, clients—including shareholders, executives, and corporations—must exercise heightened scrutiny over specific contractual provisions, such as price escalation clauses, risk allocation mechanisms, force majeure provisions, price adjustments, and “government act" clauses. Currency-related provisions, including guarantees and warranty letters, also require careful evaluation to prevent inadvertent exposure to sanctions and to effectively manage any imposed restrictions.

Our team provides tailored guidance on risk analysis on transactions, adopting contracts for sanctions compliance, and conducting third-party due diligence to ensure compliance with sanctions regulations while maintaining operational resilience in an increasingly complex regulatory environment.